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What are your thoughts on Dicker Data (DDR) and ASX pure copper plays?

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Question asked 31/01/2026

What are your thoughts on Dicker Data (DDR) and ASX pure copper plays?

Dear team, Please forgive me for asking questions 2 weeks in a row. The Christmas break and the turbulent times we live in have created a backlog of worry. 1. You recently sold out of DDR. I notice you never had a very big stake in this company, and you considered it high risk. Did you sell because you thought the risk was too high or because it had run its course with little room for growth or possibly for many reasons? 2. I have long considered BHP to be a way of covering Copper investment, but, both BHP and RIO are perhaps 'pulled back' by being mostly iron ore vendors. What would you consider to be the best ASX pure copper play around? My instinct learns to SFR, but others have suggested CSC or DVP might be overlooked gems and no doubt there are others I know nothing about. Thank you for your ever wise counsel, Octogenarian

Answer

Hi Octogenarian,

Dicker Data (DDR) is a high-quality IT distributor, which makes money by efficiently moving technology from global vendors to local businesses and clipping a margin along the way. We sold our position this month feeling that the re-rate higher based on SME (small and medium-sized enterprises) tech refresh has now largely played out, and we wanted to free up cash ahead of reporting season. We took a ~23% profit with DDR now trading above its 5-year valuation having been at a relatively steep discount back in mid-2025 when we purchased the stock just above $8.

We took profit on DDR on simple valuation grounds, and from a broader portfolio construction sense, wanting some cash to allocate to other opportunities. We don’t have any ‘grave concerns’ about the stock.

Moving onto copper (Cu), the industrial metal vying with gold and silver for most discussed subject over recent months. For pure ASX-listed exposure in our opinion, it comes down to Sandfire (SFR) and Canadian player Capstone Copper Corp (CSC). We prefer SFR which we own in our Active Growth Portfolio although it’s a close thing with both tracking the Cu price fairly closely. In the smaller space, Aic Mines (A1M) is our preferred pick.

NB: Copper has run very hard, and we would be more comfortable buying the next pullback than chasing current strength.

chart

Sandfire Resources Ltd (SFR) v Capstone Copper (CSC)

LAST UPDATED 28/01/2026 14:47

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